Skip to main content
M
MicheleM2
January 14, 2021
Question

Paid in error

  • January 14, 2021
  • 1 reply
  • 0 views

A company has paid us in error, we have no dealings with this company, so therefore cannot match the payment to anything.

I will now be making a payment to their bank account, how do you enter a contra on  banking side  to clear both the receipt and refund. 

1 reply

E
EmmaM
January 14, 2021

Hi MichelleM2, Thanks for your question. You could set up a contra chart of account to post money from and then back to and record the transaction using a journal entry if you do not want to record this as an income and expense transaction or a customer credit note. You could also do this as a journal entry showing money in and back out of the account as well ,having the bank account on line 1 and line 2 just having the debit on line one used and the debit on line 2.

Terms & ConditionsAccessibility statement